While a number of former bureaucrats oppose the idea of opening Bangladeshi investment in foreign countries right now, Prime Minister’s Economic Affairs Adviser Dr Mashiur Rahman thinks otherwise.
He said the country’s economy would benefit from the move in the long run though there would be negative impact initially.
He made the suggestions at a meeting on “Overseas investment by Bangladeshi entrepreneurs” organised by International Business Forum of Bangladesh (IBFB) in the city yesterday.
But some former secretaries and experts opposed the idea of opening up overseas investment by Bangladeshi entrepreneurs at the present situation.
They said opening up overseas investment will cause employment crisis in the home country while it has negative effect on the foreign exchange reserves also.
Former secretary Dr AFM Matiur Rahman said: “Bangladesh is yet to be developed and not ready to make overseas investment. The economy has not gone to that level.”
Mashiur said: “It is true that once we start investment in abroad, there will be negative effect in our economy but it will be short-term. In the long term we would achieve better economic growth.”
Metropolitan Chamber of Commerce and Industry president Syed Nasim Manzur said Bangladesh hasmany skilled and experienced managerial staff but we need to take them now to the next level. Now they should be sent to abroad to compete in the global market.”
A concept paper titled “Overseas Investment by Bangladeshi entrepreneurs” was presented by Dhaka University professor Dr AK Fazlul Haque Shah.
It talked about both merits and demerits of the opening up overseas investment.
It said the move would have counter effects on the source country’s capital account of the balance of payment including unemployment crisis and negative effect on the foreign exchange reserves.
According to the paper, during the period 2002 to 2012 Bangladesh lost more than US$ 12 billion in the form of illicit financial outflow (GFI, 2013).
Money is transferred from Bangladesh to Malaysia, Canada, India, Singapore, UAE, Thailand, Switzerland, USA, UK, Australia and Hong Kong while the primary purpose of such capital flight are to buy land, houses, flats, to invest in business endeavors and to deposit money with banks in those countries, the paper said.
The result of capital flight, which is not legal, are loss of tax revenue to the NBR, investment opportunities and learning advantages of local multinationals, the paper added.
However, on the other hand, currently, 47% graduates in Bangladesh are unemployed according to a recently published special report of world-renowned British magazine, The Economist.
The meeting was presided over by International Business Forum of Bangladesh president Hafizur Rahman Khan.
IBFB founding president Mahmudul Islam Chowdhury and stakeholders from different levels were present at the function.